Update: QS Partners's Boutique Business

In the eight weeks since fractional-ownership pioneer NetJets established a new subsidiary to facilitate the sale and purchase of whole aircraft across the private aviation community, QS Partners principals have seen a pick-up in transactions and “glimmers of hope” that more buyers and sellers may be ready to step into the market.

“Some segments are better than others, but we’re seeing interest from prospective buyers and sellers from all over the world, with transactions weekly,” said co-founder John Odegard.

Sales of pre-owned Cessna Citation 10 jets continues to struggle due mainly to supply-and-demand challenges in the marketplace, according to QS Partners, a division of NetJets. Photo courtesy of Textron Aviation

While encouraging, private aviation is still facing a supply-and-demand challenge, according to co-founder Seth Zlotkin. The company, which holds inventory in a variety of pre-owned aircraft, is seeing significant activity in the midsize category. “A lot of Gulfstream G200s are changing hands, and G5s and Global Express aircraft have hit price points that are bringing buyers into the market,” he said. However, Zlotkin added, the Cessna Citation 10 market continues to struggle.

Prior to the launch of QS Partners, NetJets’s activities involving the sale and purchase of business aircraft on behalf of customers were largely conducted under the radar. As word of mouth spread about the service they extended to clients and inquiries broadened, NetJets decided to form the subsidiary.

The new venture was never intended to serve as a vehicle per se for steering business to its fractional, charter an aircraft management services, though about two-thirds of its inventory is the disposal of NetJets aircraft. Rather, QS Partners is an outgrowth of the process that NetJets goes through in refreshing its fleet periodically, Odegard said.

“We’re a boutique shop that is leveraging our many years of sales experience," he noted. "What distinguishes us is not the volume of transactions we facilitate, but the personalized service we provide to our clients.”